Question32: We are dealing in Rice Bran for procuring Rice Bran , we have to pay Mandi Tax, whether GST is payable on Mandi Tax under RCM being service taken from Govt. Though Rice Bran is NIL GST product Second whether we have to pay GST on Fright paid on Rice Bran under RCM. please clarify both the above points.

Answer: Section 15(2)(a) requires that value should include all taxes except GST The mandi tax is not GST so it should be added to the value of the product to charge GST.

But it is not a problem because tax on rice bran is nil.

Since the value of mandi tax is added in the value of product so no question arise to pay tax on the individual value of mandi tax.

So even the value is increased it is not effecting the tax liability,There is only one effect that is your aggregate turnover will increase which is to be calculated for the purpose of registration etc

Notification no 12 Of CGST provide exemption at serial no 21 to the transportation of agricultural produce so no tax is to be paid on freight

(Reply dt.17/01/2018)